London Rental Market – January 2016

As we start the New Year, rental demand in London appears to be continuing in much the same vein as in 2015 – high. Understandably, there is always a slowdown leading up to Christmas but the New Year usually starts with a surge of enquiries as applicants make plans for the year ahead. This year is proving no exception, with our lettings offices already reporting brisk demand.

We expect the popularity of new residential developments in London to continue this year, as they fulfil so many of applicants’ requirements –  high specs, good amenities and usually close to good transport links. We also expect the trend towards longer-term tenancies to continue as tenants look to avoid the costs associated with moving home – this too is clearly good news for landlords.

City, Canary Wharf, Docklands and East London

Rental demand in the City is strong and the start of 2016 has seen this continue, with our office busy with enquiries as soon as we opened after the Christmas break. The UK’s strengthening economy remains a key factor here, and there is a constant flow of professionals moving to the area to take up new positions.

Properties continue to rent quickly in Canary Wharf too with the developments on the fringes of the area attracting a lot of interest from younger professionals with more modest budgets in search of value for money.

The Marine Wharf development, which is where our Surrey Quays branch is located,  is experiencing high demand from applicants – it is a superb development but as it is slightly further from a tube station (Canada Water is a 12-minute walk away), rentals are 10% to 15% lower than in similar developments that are closer to a tube station. Many tenants understandably feel that a slightly longer walk is a small compromise when set against the financial savings they can make. The launch of new apartments in London Dock later in 2016 is seeing our Wapping branch busy with enquiries from landlords who have bought off-plan at the development.

Greenwich is another rental hotspot, combining stunning residential developments with the character and tradition of one of London’s most historic Boroughs. Several new apartment buildings have launched recently prompting more young professionals to move to the area for the first time. So demand is strong but we have good stocks to meet the ever-increasing number of enquiries.

Central London

We continue to see good rental demand in Kensington, with one and two bedroom apartments performing particularly well. Value for money remains a priority for tenants but most are paying close to asking rental if the property is priced sensibly and well presented.  Presentation is the key. The increasing supply of new-build properties in London is raising expectations amongst tenants who now view showhome standards of presentation as the norm. This sets a benchmark for rental properties, old and new, intensifying competition in the market. As well as the proliferation of new-build properties, we are also seeing mansion blocks being bought and refurbished to a very high standard and these are also very appealing to tenants.

In Knightsbridge, we are seeing good demand for well-priced one bedroom apartments which are letting quickly thanks to increasing interest from young couples and single professionals. Many tenants are now requesting a property in a new development and this may account for the increasing popularity of properties south of the river, where many high spec developments are being built, particularly in Nine Elms, SW8.

Rental demand remains strong in and around the Hyde Park area and we have good stocks of properties to meet demand. While the market is price sensitive, most tenants are paying close to asking rental for properties, as they understand that there is stiff competition for the best properties. We are especially busy dealing with enquiries from relocation agents at this time of year too.

Over at our Hammersmith branch, high rental demand continues to grow and apartments are letting very quickly – we currently have waiting lists of referenced tenants looking for homes here so we are continuing to look for new instructions from landlords. Imperial Wharf and Chelsea Creek see continuously high demand throughout the year and are incredibly desirable locations for tenants.  As a complete package, with their high spec, amenities and fantastic location they are hard to beat, even by London standards.  It will come as no surprise that 2016 has got off to a good start, with plenty of new enquiries coming in over the Christmas period.

Enquiries are also coming in thick and fast at our Ealing branch, with applicants looking for rental apartments at Dickens Yard and other nearby developments including the Arc Tower, Kew Bridge West and Kew Bridge, where we will soon be opening our new on-site office. As the area’s reputation grows, we are seeing the typical tenant profile evolve. So not only is West London attractive to younger professionals, but increasingly to senior executives looking for high end, elite specification properties.

North-West London

Demand for one and two bedroom rental properties remains strong in Highgate, with apartments letting quickly. Tenants are looking for reasonably priced, well-presented properties close to good transport links and while they continue to demand value for money they recognise that the rental market is competitive and there is often a shortage of these properties. As a result many are upping their budgets a little to find the right property. Typical rents in Highgate at the moment are £325-£375 per week for a one bedroom apartment and £375-£500 per week for a two bedroom property.

We’re finding increasingly that, once tenants have found a good property, they prefer to renew their tenancy rather than incur the cost of moving.  Very few are moving home without good reason, maybe because they are buying their own property or moving overseas with their job.  This is clearly good news for landlords who benefit from the stability of longer-term tenancies.

Demand is good in Hampstead and we are already receiving enquiries from applicants keen to move home in the New Year. One and two bedroom apartments are seeing strong interest from younger professionals while we are also receiving enquiries from senior executives planning to move to the area from overseas, particularly the USA, Europe, Australia and South Africa.

At Beaufort Park in Hendon, the New Year has got off to a positive start with enquiries coming in as soon as the office opened again after Christmas. One bedroom apartments are particularly popular. Easy transport links to the City and Central London, combined with the development’s high spec apartments and excellent amenities make it exceptionally popular. And, with prices so affordable, a priority for most tenants, properties always let quickly here, whatever the time of year.

If you’re looking to move soon, take a look at our available property to rent here or contact one of our branches